Margin and markup calculator
Two rates people often mix up: markup is measured on the cost, margin on the selling price.
Result
20.00Profit
- Markup (profit ÷ cost)
- 25%
- Margin (profit ÷ price)
- 20%
Inputs
- I know…
- The price
- Cost (before tax)
- 80
- Selling price (before tax)
- 100
How it is calculated
Profit = selling price − cost.
Result
Profit
- Markup (profit ÷ cost)
- 25%
- Margin (profit ÷ price)
- 20%
How it is calculated
- Profit = selling price − cost.
- Markup = profit ÷ cost × 100. Price = cost × (1 + markup ÷ 100).
- Margin = profit ÷ price × 100. Price = cost ÷ (1 − margin ÷ 100).
Example
Cost 80, price 100: profit 20, markup 25%, margin 20%.
Good to know
- Work before tax: remove sales tax or VAT first.
- Margin is always below 100%.
Frequently asked questions
What is this tool used for?
Two rates people often mix up: markup is measured on the cost, margin on the selling price.
How is the result calculated?
Profit = selling price − cost.
What should I check before using the result?
Work before tax: remove sales tax or VAT first.